‘Human Factors’ is one of the three fundamental components of successful Performance Engineering. Radical transformation is not possible without serious consideration of all three interlinking components: Process Redesign; Information Technology; and Human Factors.

‘Human Factors’ addresses the ‘organizational’ impact of the redesigned processes enabled through a high level of Information Technology. This includes: the organization structure; individual roles; the organization of work; attitudes and values; and the associated HR policies and practices, including transitional policies, reward and recognition programs, remuneration and reward programs and associated Training programs. In addition, it concerns itself with the initial stages of Transformation Planning including: the Change Roles required; their associated competencies; the main activities/responsibilities of each; initial estimates of the level of resources required.

1.1 Terms of Reference of the Human Factors Team

The work of the Human Factors Team during Redesign followed on from the work undertaken during the Baseline Phase of Project XYZ, which documented the findings of the team in respect of key characteristics of the current XYZCO organization.

The Objectives of the Human Factors Team during the Redesign Phase were as follows:

To act as ‘Architects’ and ‘Planners’ providing initial recommendations based primarily on their findings during participation on the Redesign Teams, and during the two week Human Factors Workshop, in the key areas identified below.

· The Vision of the new XYZCO Organization Structure.

· Job Roles/Descriptions/Competencies and Training Requirements for the roles identified during Redesign Sessions.

· Cultural Issues surrounding the required Organizational Change.

· Supporting Programs including a Vision for Performance Measurement and Management; and Reward and Recognition Programs.

· Training Requirements Plan for the Organization

· Communications Strategy

· Alignment Issues

· Recommendations for Implementation

To ensure that these initial recommendations formed the basis for further detailed analysis, development and validation by the appropriate members of the Project XYZ Implementation Team (i.e. The XYZCO Transformation Team).

1.2 Summary of Findings and Recommendations

The findings and recommendations of the Human Factors Team are summarized in the following table:

FINDINGS

CHARACTERISTIC

NOW

FUTURE

I. Business Model

(Ref.: Section 2)

3 divisions. Functionally based. Much duplication of effort, and many ‘hand offs’ between departments.

6 interlinked ‘core’ business processes. Simple, flexible, capable of supporting the business into the future. ‘Plug and Play’ processes which can be adapted as appropriate in line with changing business strategies.

RECOMMENDATIONS

· That the suggested business model be accepted as the XYZCO business model of the future.

II. Core Competencies

(Ref.: Section 3)

Current skills and competencies rated above average includes Customer Requirements Fulfillment. It is not generally felt that these are the ‘core competencies’ the organization will require to sustain success in the future.

The identification of the ‘Core Competencies’ required for future success is dependent on a full understanding of the Strategic Plan of the organization.

RECOMMENDATIONS

· That the 'core competencies' of XYZCO be clearly defined in light of the organization’s chosen Business Strategy, and that this be done as soon as possible.

· That the above activity be undertaken with the full involvement by a joint team including representatives from XYZCO Strategic Marketing; Project JVPROJECT; and Project XYZ, based on customer and market requirements and economic realities.

CHARACTERISTIC

NOW

FUTURE

III. Outsourcing Opportunities

(Ref.: Section 4)

Most activities are currently performed ‘in house’ irrespective of alternatives. Some outsourcing of ‘Customer Requirements Fulfillment’ is undertaken in certain markets.

Opportunities exist for outsourcing a number of processes and functions which are not considered to be required ‘core competencies’ and which could potentially be provided better and more economically from partnering with a third party.

RECOMMENDATIONS

· Each opportunity needs to be researched and judged on a predetermined methodology.

Flatter structure based on a Centre/Hub/Spoke design. Process driven. Team based. 3 layers. Strategic Location of the above to be determined. Structure supports potential method for providing 24 hour service capability based on customers connecting to one of three nominated Hubs within a 24 hour period.

RECOMMENDATIONS

· That the strategic location of the centre/hub/spoke and the provision of 24 hour service be addressed and resolved immediately, by a joint team including representatives from XYZCO Strategic Marketing; Project JVPROJECT; Project XYZ, based on customer requirements and economic realities.

· That the issue of the provision of 24 hour service be addressed and resolved immediately by a joint team including XYZCO Strategic Marketing; Project JVProject; Project Sierra; and Project XYZ based on customer requirements and economic realities.

Authority pushed down the organization, empowering and enabling employees to make decisions as required, as near to the customer as possible.

.

RECOMMENDATIONS

· Further detailed definition and validation of the role profiles to be undertaken as part of the ongoing work for the HR Team. This work to be kept closely aligned with the further work of the Process Teams as they move forward.

1:2 (Includes 'specialist' Management roles) Many layers of supervisors / departmental management place artificial barriers in the way of the smooth running of the processes.

Approximately 1:30, supported by high levels of 'empowerment', and a team based structure. Managers become 'Team Coaches.' Teams operate across lines to enable the necessary links and communication to take place throughout the organization as a whole.

RECOMMENDATIONS

· That the issue of the strategic location of Hubs be resolved immediately and the proposed Team Structures be refined in accordance with the outcome.

· The structure recommended will be fundamentally different from the organization structure of today. The process orientation (cross 'functional') of the work, together with the concept of 'empowerment' will lead to a much flatter structure with decision making powers invested at the point at which decisions need to be made. 'Functional' departments have been cut to a minimum whilst preserving key expertise.

· That further work be undertaken by the HR Team in a more detailed definition of the Teams, Team structures, and the required links into the Performance Measurement/Management; Reward/Recognition Policies.

CHARACTERISTIC

NOW

FUTURE

VIII. Culture

(Ref.: Section 8)

Warm, cozy, friendly, insecure, lacking in confidence, a cautious follower, reactive, diffident decision maker, ranks controlled rather than 'in control' steeped in 100 years of history.

Transformation dependent on organization starting to walk the new values, empower, trust, get close to the customer, supported by supporting culture education program, sustained by action.

Worldwide cultural differences to be seriously addressed and their impact taken into account in respect of key messages, and the re-enforcing programs of HR policies and practices, Communications and Culture Change Education Program.

Ensure that a clear Vision is communicated throughout the organization which describes how the organizational will look from an operational and attribute perspective, re-enforcing the reasons and imperatives for change.

Replace ‘snipers’ and individuals who fail to adapt to the new environment with individuals who are adapting more quickly. Not to do so may institutionalize resistance and give off the message that management are not serious in their efforts.

IX. HR Policies in Transition

(Ref.: Section 9)

A number of transitional policies will be required to support XYZCO and its employees as it makes the transition to the new world. These will include: Assessment and Selection; Redeployment; Redundancy; Counseling; Outplacement and Communication.

RECOMMENDATIONS

That the above policy framework for Transitional HR Policies identified in Section 9, be defined and agreed in detail on a worldwide basis as a priority activity of the HR Team moving forward.

CHARACTERISTIC

NOW

FUTURE

X. Performance Measurement and Management

(Ref.: Section 10.1)

Subjective.

Performance Measurement tied to tangible measure of customer service and organizational performance. These are applied at a number of levels; (organization, team, role groupings, individual). Measures set to promote mutual dependency and teamwork, focusing primarily on the delivery of tangible results.

RECOMMENDATIONS

· That the above XYZCO Performance Measurement and Management vision be developed further by XYZCO Worldwide HR expertise in conjunction with outside consultancy.

XI. Reward and Recognition

(Ref.: Section 10.2)

A number of schemes in place in isolation, not clearly linked to the Strategic Direction.

Rewards based on actual value added/performance achieved by Teams. Incentive element introduced to Remuneration approach. Teams to have involvement in how 'incentive pot' is distributed. Various types of rewards, paid frequently

RECOMMENDATIONS

· Investment in HR expertise to work with Transformation team in the design of Reward and Recognition systems, be linked to the overall performance of the organization.

· Further benchmarking/research be carried out in respect of the other companies/parts of the XYZCO group undergoing similar radical transformation.

CHARACTERISTIC

NOW

FUTURE

XII Training

(Ref.: Section 11)

On the job mainly, or weighted to Sr. Level Managers. Training exists but is not always focused on the needs of the organization and of the individual.

Training will be an ongoing investment available to everyone in line with carefully identified skill gaps.

RECOMMENDATIONS

· Transformation dependent on the willingness of the organization to invest in an appropriate training strategy including organizational/cultural, skill and competency, specialist training, offered across a range of mediums from on the job, to off site designed to ensure maximum return on investment. The Outlined Training Program needs to be developed further by XYZCO Training in conjunction with appropriate outside consultancy where appropriate.

XIII. Communications

(Ref.: Section 12)

Fairly haphazard, 'Grapevine' most effective form of communication. 3 Divisions of XYZCO communicated with as distinct and separate audiences.

Communications must become the mainstay of the organization’s transformation, communicating, re-enforcing and ensuring a two-way channel is open at all times.

RECOMMENDATIONS

· That the XYZCO Communications Strategy ‘Communications in XYZCO’ be further developed into a detailed and aggressive communications program for XYZCO.

· That the Communications Program be carefully aligned with the overall Transformation Plan for Change, to ensure that communications are both timely and appropriate in their content, and the Communications Resource identified be proactive in ensuring that this is so.

· That XYZCO be targeted as a single entity in terms of the Communications Program.

· That the Communications Program be implemented as a matter of urgency.

CHARACTERISTIC

NOW

FUTURE

XIV. Transformation Plan

(Ref.: Section 14)

A formal structure for the Transformation of XYZCO is required in order to move forward in a controlled manner with the required initiatives. This will include a Transformation Champion; A multifunctional Transformation Team (with appropriate sub-team structure) and a Transformation Team coach. In addition, identification of the required activities, their inter-relationship, timing, scope, and the assignment of responsibilities together with the identification of likely pitfalls/ sources of resistance, and strategies for anticipating and overcoming them, will require careful consideration and planning.

RECOMMENDATIONS

The Transformation will not occur without a formal Change Structure being put into place as soon as possible.

That the Transformation Team Champion is XYZCO Managing Director, Luke Skywalker.

That the Transformation Team Coach is appointed by and reports directly to Luke Skywalker.

That the Transformation Team Coach defines the roles of the Transformation Team Members and is involved in the selection of the transformation Team.

That the Transformation Team Coach has overall accountability for progress against Plan.

That a Multifunctional Transformation Team is put into place as soon as possible.

2. The New Business Model

The new business model for XYZCO is based on a simple, but powerful, statement called the Core Task; a single statement defining how an organization creates value for its customers. For XYZCO, it has been defined as;

"XYZCO creates value by sourcing and providing best value products and services to customers of its world-wide partners in accordance with XYZCO's customer values."

From this single statement a set of six inter-linked core processes were defined:

Strategic Marketing Management

Product & Service Development

Relationship Management (including Client Services)

Customer Requirement Fulfillment

Payments

Inventory Management

These core processes are those processes that must be performed extremely well by or for XYZCO in order to achieve the Core Task. Their inter-relationships forms the new XYZCO business model as illustrated on the following page.

2.1 Recommendations

The following recommendation is made:

· That the suggested business model above, be accepted as the XYZCO business model of the future.

2.2 The XYZCO Business Model

3. Core Competencies

From an organizational perspective, it is necessary to understand the 'core competencies' of XYZCO, and to differentiate them from the 'core processes'.

Core competencies helps define how an organization will behave in its business i.e. how it will differentiate itself in its chosen market. The core competencies of XYZCO will define the essential reasons why customers choose to do business with us, and are the fundamental 'enabler' of the organization’s strategic intent.

An understanding of what XYZCO's core competencies are/need to be is essential in order to:

Identify the key areas for organizational focus and attention.

Define the essential skills and competencies required in the key areas of the organization.

Identify major skill/competency gaps in key areas of the organization.

To put into place steps to quickly rectify skill/competency gaps identified.

To understand where opportunities may exist for outsourcing those processes which do not directly uphold the core competencies of the organization.

The identification of the required core competencies should fall naturally out of the XYZCO Business Strategy and Strategic Plan. As the detailed Business Strategy for XYZCO has not yet been clearly communicated, it has not been possible at this stage to precisely define the required 'core competencies' for the organization.

The 'core business processes' identified in the new business model, however, are independent of the Strategy, and are sufficiently flexible, and 'open' to support the Organization into the future.

3.1 Current 'Core Competencies' of XYZCO

The following is a rating of a number of XYZCO's skills/competencies today as viewed by the Human Factors Team. The definition of the 'core competencies' required in the future in order to move us forward in our chosen strategic direction have yet to be clearly defined.

Skills/Competencies

Rating

Skills Gap

Strategic Decision Making

2/10

Good decision are made but not always carried through and communicated to all levels

New Product Development

1/10

Although a process now exists there have been few new products and services launched, indeed our competitors seemingly always get there first.

Client Services

4/10

People good, systems appalling as they do not lend themselves to cross selling and multiskilling.

Relationship Management

5/10

There are pockets of excellence but little consistence around the globe. Relationships tend to be product rather than customer focused.

Customer Requirement Fulfillment

(Where economies of scale)

8/10

The location of the distribution centres can restrict speed of delivery.

Inventory Management

3/10

The processes is adequate for the ‘norm’ but finds it difficult to cope with the exceptions.

Financial Planning/Management Information

5/10

Constraints in some systems and manual transfers of information can lead to inaccurate data being recorded.

3.2 Recommendations

The following recommendations are made:

That the 'core competencies' of XYZCO be clearly defined in light of the organization’s chosen Business Strategy, and that this be done as soon as possible.

That the above activity be undertaken by a joint team including representatives from XYZCO Strategic Marketing, Project JVProject, and the Project XYZ Human Factors Team based on customer, market requirement and economic realities.

4. Outsourcing Opportunities

Core processes add value through their excellence in meeting customer expectations and requirements. Core processes may, if appropriate, be outsourced (to XYZCO or to third party business partners ) to achieve the required levels of performance and excellence.

4.1 Advantages of Outsourcing

The benefits to the organization of outsourcing selected core processes would be:

To allow the organization to concentrate and focus on those 'core processes' which uphold 'core competencies'.

To improve levels of performance and excellence in selected processes at an economic cost.

To take advantage of 'state of the art' knowledge and expertise.

To gain leverage from other organizations’ 'core competencies'.

To gain leverage from other organizations’ economies of scale.

4.2 Criteria for Potential Candidates for Outsourcing

The following selection criteria were identified for determining potential outsourcing opportunities:

Not a 'core' competency.

Lack of existing expertise.

Does not warrant full time resources.

Provides opportunity to take advantage of partners’ economies of scale.

Process requires an objective outsiders’ view point.

Process in need of skills transfer.

Provides opportunity to improve performance at economic cost.

Provides opportunity to take advantage of partners’ brand names and reputations.

Processes that do not uphold core competencies of the organization, and require expensive infrastructure.

4.3 Things That Should not be Outsourced

Likewise, a number of areas were identified that should not under any circumstances be outsourced. These included:

Strategic decision making.

Management and control.

Knowledge of 'key measures' of the organization.

Areas of commercial confidentiality.

Processes that involve direct contact with our customers.

Processes with a high risk of impacting customer service.

Development of people to maximum potential.

Processes with a 'profit' opportunity.

4.4 Risks of Outsourcing

Finally, a number of potential risks were identified in respect of the outsourcing decision. These included the risk of:

Dilution of core skills.

Abdication of responsibility.

Becoming 'captive' in respect of price jacking in the long term.

Being tied to the 'fortunes' of the chosen Partner.

Reduced loyalty.

Loss of control over the total business model.

Business expertise needs to be transferred.

Loss of confidentiality.

Potential disruption of the IT Infrastructure.

In addition, for outsourcing to be a viable proposition for the organization, 'Partnership Management' as defined within the Relationship Management, would need to be a 'core competency' for XYZCO as defined in the Relationship Management Process.

4.5 Potential Outsourcing Opportunities

OUTSOURCING OPPORTUNITIES

CORE PROCESS

OUTSOURCING OPPORTUNITY ?

JUSTIFICATION

Strategic Marketing Management

The research, idea generation, benchmarking and some elements of PR and communications are activities which could be outsourced to a third party.

The information and research required for this process will be found in the public domain and thus it may be more economical to gather it externally. Also allows access to best practices which would add and build skills to internal expertise where they do not exist.

Product and Service Development

The research, testing and production of new products and services.

All but the decisions could be outsourced depending on the economics and the benefit to be gained from external ideas.

Relationship Management

No

Client Services

No

Customer Requirement Fulfillment

Pick/pack and distribution.

In those markets where the required level of service can be supplied more economically by a third party than can be provided internally.

Payments

The customer payments mechanism.

If the required level of service for customer account reconciliation, can be provided more economically than our own methods in individual markets.

OUTSOURCING OPPORTUNITIES

CORE PROCESS

OUTSOURCING OPPORTUNITY ?

JUSTIFICATION

Inventory Management

Some Product Inventory Management.

If the required level of service can be provided more economically than our own methods, in particular where products are sourced from a third party

IT

Development, maintenance and ongoing support at local level, IT training.

If the required level of service can be provided better, more economically than our own methods in individual markets, and is not customer focused.

4.6 Recommendations

The following recommendations are made:

· That a methodology for the evaluation of outsourcing opportunities be developed, taking into account the Redesigned Relationship Management Process.

· That an Individual Business Case be prepared for each viable outsourcing opportunity to establish whether or not the required services can be provided more economically by a third party.

5. Vision of the Organization Structure

5.1 Basic Assumption

If a process is to add maximum value to the customer, it should be located as physically close to the customer as the customer requires it to be.

5.2 Vision of XYZCO

Based upon the assumption above, the structure below has been developed:

VISION OF THE XYZCO STRUCTURE

THE SPOKE

THE REMOTE HUB

THE CENTRE

Would house processes that directly add value to the customer and are located physically wherever the customer wants us to be and is economically / strategically viable. Such a location may or may not be bricks and mortar, and could be within the customer’s own premises.

Would house processes that add value and provide customer service close to specific 'local' markets. Its exact location will be dependent upon the volumes of transactions, business partners, distribution mechanisms, economics, strategy, language, culture, politics and infrastructure.

Would house processes which provide primarily business value add. These processes would be provided to the business from a single source, and their location will be dependent on economics and strategy. The customer feeds into the process, but essentially is not concerned where physically it is performed.

Relationship Management

Local Marketing

Client Services

Customer Requirement Fulfillment

Payment ( part )

Marketing

Payments ( part )

Strategic Planning

New Product Development

Inventory Management

5.2.1 Pictorial View of the Centre, Hub and Spoke Structure

5.3 Show Cause For Where Each Process Should Be Carried Out

PROCESS

SHOW CAUSE

(CUSTOMER)

SHOW CAUSE

(XYZCO)

SPOKE

(Can be at Spoke, Remote Hub or Centre)

Marketing Planning Local

Programs can be tailored to local market needs / strategy and thus can be formulated in a collaborative approach with each business partner.

Can maximize opportunities in local market delivering centrally driven marketing initiatives locally. Feeding local information back improves the quality of the strategic planning process and enables promotional experience across markets to be shared.

Relationship Management

Contacts who use the local language/culture and have knowledge of local market conditions; legal/political considerations; increased likelihood of mutually beneficial partnerships at the level that reflect the importance of the relationship.

Maximize potential of partnership, market and organization knowledge, recruitment from local resource pool, more efficient cross selling and competitive pricing based upon local market information and knowledge of customer’s business.

Overall control and monitoring of financial position, enables treasury to make investment decisions and controls risk with the ability to monitor the banking system

Inventory Management

Only cares that the Inventory is available and delivered within his expectations. It does not matter to the customer where it comes from.

Can benefit from efficiencies in terms of Just in Time Inventory updates and will centralize expertise. Support strategic marketing.

5.4 Provision of 24 Hour Service

For reasons of customer demand, and in order to retain competitive parity, XYZCO needs to be available to provide all Business Partners and/or ‘end-users’ with the required service when ever they require it, depending on their hours of trade, or the emergence of an ‘emergency’ situation. This implies a need for every customer to have access to a 24 hour service capability. In an ideal world for the customer, such a service would be available from their ‘local’ hub and spoke where the service received would reflect their local language and culture.

As it may not be economically viable to provide this at every hub and spoke, an optimum position of retrenchment should be sought. The recommendation is therefore that every hub should provide all the client service capabilities demanded by the local market within the normal working day (N.B. this includes, if appropriate the refund service). After hours, services would be provided by another ‘operating’ hub equipped to provide at least a local language service for the customer through the XYZCO global network.

By way of illustration, assume every hub is open for 8 hours a day. Dividing the world up into three time zones, one hub in each time zone would take responsibility of providing the ‘after hours’ service for other hubs whose local hub has gone ‘out of hours’. To be able to achieve this, each of the 'elected' hubs would have to have the language and preferably cultural capabilities to deal with all clients.

5.4.1 Advantage of Suggested Approach

The advantages of the above recommendation are as follows:

Would provide an optimum service 8 hours of the day to all customers world-wide. (Currently this is only available to the UK market.)

Cost would not be centralized for refunds / emergency services as they would be handled across the world.

With better access to all client services functions cross selling opportunities would be maximized.

A ‘local’ service would be provided to all customers for at least the working day.

5.4.2 Conclusion

Dependent upon strategy/economics more or less than three hubs could be required in the most effective and economical provision of this service.

5.5 The Customer Perspective

From the Customers’ point of view, they will receive a consistent level of exceptional service in their local market, sympathetic to their local needs, i.e. culturally aligned, and in their local language based upon a thorough local market knowledge. Through their local channels (face to face/electronically/telecommunication) customers will have access to a world-wide network of credible, timely relevant services.

5.6 Recommendations

The following Recommendations are made:

· That the strategic location of the centre/hub/spoke be addressed and resolved immediately, by a joint team including representatives from XYZCO Strategic Marketing; Project JVPROJECT; Project XYZ, based on customer requirements and economic realities.

· That the issues of the provision of 24 hour service be addressed and resolved immediately, by a joint team including representatives from XYZCO Strategic Marketing; Project JVPROJECT; Project Sierra; and Project XYZ , based on customer requirements and economic realities.

6. Job Roles in the New World

One of the key and most enduring 'enablers' to exceptional organizational performance is highly skilled, motivated people.

6.1 Assumptions

The newly designed and redesigned processes supporting the new XYZCO Business model require a relatively small number of key roles in their execution. A number of assumptions underpinned the conception of the roles as they have been defined.

Firstly, cause had to be shown why a particular process/sub processes could not be fully automated.

Where a process could be shown to require levels of human intervention/judgment an individual would assume complete responsibility for as much of the process 'end to end' as absolutely possible, irrespective of the type of transaction/product.

Individuals would be 'empowered' in terms of skills, knowledge, information and authority.

Cause had to be shown for any 'hand offs' with substantiating evidence provided in support on the grounds of:

· Highly specialized knowledge/expertise required.

· Not to do so would result in potential dilution of expertise and a likely reduction in customer service.

· A change occurred in the location/environment in which the process activities are performed.

· The total set of competencies required could not be effectively vested in a single individual.

· The customers needs could be best served by concentrating certain activities in particular job roles.

6.2 Roles Defined

The essential roles identified within each of the designed/redesigned processes were as follows. Roles were defined under the following 'titles'. It is recommended that these titles be amended during final job role definition to reflect the purpose of the role in terms of the customer.

XYZCO JOB ROLES - ALL PROCESSES

PROCESS

SPOKE

HUB

CENTRE

Strategic Planning/Marketing Management

Marketer

Management Team

Strategic Planner

Relationship Management

Relationship Manager

Client Services

Client Services Consultant

Customer Requirements Fulfillment

Shipping coordinator

Payments

Client Services Consultant

(Was 'Payments Officer’ - Customer Accounts)

Payment Officer (Bank Account Reconciliation)

Inventory Management

Inventory Manager

Specialist Roles

Investigations

HR

IT

HR

IT

Finance

Other

Team Coach Roles

Team Coach Roles

A fuller description of each of the roles together with a definition of the competencies required for each can be found at Appendix I.

6.3 The Role of Team Coach

The role of the middle manager is likely to be greatly impacted by the move towards fewer more empowered and multi-skilled roles. The traditional management role will significantly diminish, giving rise to a coaching rather than a controlling role. Traditional middle managers will be required to acquire a new set of skills. However care will be taken to ensure that 'specialists' in their own right lose none of their special expertise.

A new set of competencies and focus is required as traditional managers transform themselves from a controlling role to one of a Team Coach.

6.3.1 Competencies of the Team Coach

Provides Vision and Leadership.

Has ability to stand back from the day to day business.

Acts as catalyst for change among the team.

Champions the customers view.

Has ability to balance Task/Individual/Performance.

Keeps the team and the individual focused and motivated.

Makes the final decision if required.

Is a natural communicator at all levels - Spokesperson for team outside of the local environment.

Facilitates Self Management, instilling confidence and creativity.

Sets expectations and communicates progress.

Together with the Team Members and the Managing Director, establishes a measurement and management system for the core process.

Counsels and coaches those deficient in the role towards standard of performance.

In conjunction with Team Members, is responsible for the development of individual team members.

Rewards teams and individuals.

Is responsible for Disciplinary Procedures.

Together with Team Members, hires people based on appropriate criteria, including 'soft' measures respectful of the particular dynamics of the team environment, and the requirement for mutual trust amongst team members.

Acts as Guardian of Team Standards

Acts as coach and 'sounding board' for the team encouraging them to develop their own ideas within and across processes.

Encourages feedback from Team Members, Peers, and Customers and modifies objectives, behavior/style appropriately.

Establishes a continuous improvement program for the component processes

Looks at external drivers which might influence the way the process components are delivered e.g. New technologies

· Has overall Accountability for:

· Budget Management and Control

· Adherence to SLA's

6.4 Conclusions

The result is a relatively few 'highly empowered' roles. Where specialist roles have been maintained, cause has been shown for doing so.

The majority of the new roles involve an increased set of work activities, and require a greater depth of knowledge and breadth of task expertise. This has implications in respect of the type and level of training required, and the management of the potential skill gap. Training issues are discussed in some detail in Section 11 of the report. In addition, there are obvious cultural implications arising from the implied authority invested in the new roles to make decisions about process operations and to satisfy customer demands without recourse to several layers of management above. These and other cultural issues are discussed in more detail in Section 8 of the Report.

6.5 Recommendations

Further work is required in the following areas:

· Further detailed definition and validation of the role profiles to be undertaken as part of the ongoing work of the HF Team. This work to be kept closely aligned with the further work of the Process Teams as they move forward.

· As this work will form the linchpin of the Assessment and Selection Process, the initial role profiles submitted, must be refined further by the Human Factors Representatives, and Process Champions.

Potential specialist roles in the area of Product and Services Development have yet to be defined.

The role of the Marketer may require further breakdown following detailed process development of the Strategic Planning/Marketing Management Process.

7. The Organization of Work

The organization of work in the new environment has been designed to reflect the process orientation of the organization, and the focus on satisfying the customer.

7.1 Principles Driving the Organization of Work

The approach recommended has two major thrusts:

The building of Multifunctional Team Structures where the combination of multiple skills, perspectives and judgments crossing previous organizational and hierarchical boundaries are essential to optimum performance within a given process(es).

The use of more 'Specialist' Teams valuable where centres of excellence need to be preserved upon which the company depends for competitive edge, where necessary.

· As defined in the following pages the Team structure proposed assumes NO OUTSOURCING. Suitable adjustments will be made should any of the core processes be ultimately outsourced.

7.2 Outline Recommended Approach

The structure recommended will be fundamentally different from the organization structure of today. The process orientation (cross 'functional') of the work, together with the concept of 'empowerment' will lead to a much flatter structure with decision making powers invested at the point at which decisions need to be made. 'Functional' departments have been cut to a minimum whilst preserving key expertise.

An inter-linking structure of cross functional and specialized teams has been defined. The basis of the recommendations is as follows:

7.2.1 Assumptions

The following assumptions have been made:

· Based on the potential for approximately 15 Hubs, Hubs will generally house between 5 - 30 individuals.

· Where hubs are significantly smaller, or significantly larger (e.g. NA), modifications to the proposed model will need to be made as appropriate.

· The above modifications can only be made once the number and strategic location of the required Hubs has been defined.

· Cultural differences could prevent the model from having universal applicability. These areas are to be identified through further work, and alternative models developed as required.

· More traditional ‘hierarchical’ models may need to apply in the ‘Specialist’ teams.

7.2.2 Proposed Team Structures

The basic structure is as follows:

i) Hub/Spoke Team

Multifunctional groups of individuals acting together as a Business Team, covering the following processes.

Relationship Management

Local Marketing

Client Services

Customer Requirements Fulfillment

HR expertise

IT expertise

Investigations

ii) Central (not distributed) Teams

Strategic Planning

Business Development team (Marketing Management)

Financials Group

Finance

Inventory Management

Payments

Human Resources Team

Information Technology Team

The Teams themselves will contain the appropriate mix of skills and expertise required to deliver results in the most effective, efficient and economically viable way. Within each team, sub-groupings of particular expertise may need to evolve.

7.2.3 The XYZCO Team Structure

The Teams have been defined as follows:

THE HUB/SPOKE TEAM

Description:

The Hub and spoke Team is the 'customer facing' Cross Functional Team responsible for providing XYZCO Business Partners with the products and services that they demand, in an appropriate manner and style, determined by the Business Partner. Individual Team members will be supported by the appropriate skills, competencies, expertise, knowledge personal attributes, authority and supporting technology, to provide exceptional service to Business Partners.

Teams should be organized in a way compatible to the building of a team spirit, promoting a sense of belonging and responsibility.

Reward and Recognition

The Team as a whole will be incentives on a set of common criteria in order to build mutual dependency and a sense of shared objectives and values. (Additional criteria may also apply depending on process specific activity and any areas of specialization).

Team coach:

One

The Team Coach will be responsible for the overall Team (i.e. Hub/Spoke) Performance, in line with the profile outlined in Section 6.3.

The Team Coach may be assisted by a supporting 'Team Leader/Representative' where the Hub and Spoke Team is larger than 30 people, whilst retaining responsibility for the whole Team.

Links to Other Teams:

Hub Spoke Team Coaches are a formal (though not full time) member of the Business Development and Strategic Planning Team.

Team Coach links to Central Team of HR/IT Expertise for Specialist Career Development Advice.

Hub/Spoke Team Coaches link to other Hub/Spoke Team Coaches

THE CENTRAL STRATEGIC PLANNING TEAM

Description:

This Team is responsible for the Strategic Planning of the XYZCO Organization

Composition:

This Team will be a 'composite' team consisting of:

The Managing Director of XYZCO

Hub and Spoke Team Coaches ( or selected Representatives )

The Business Development Team Coach

Strategic Relationship Managers

The Finance Group Leader

HR Team Coach

IT Team Coach

Links to Other Teams:

The following links are present:

Hub and Spoke Teams

Central Business Development Team

Central Financial Group

Central HR

Central IT

Other areas of the XYZCO Group (External)

Strategic Partners (External)

Other Expertise:

Other Expertise will be called upon as necessary in the production of the Strategic Plan both inside and outside of the XYZCO Group.

Size:

Approximately 25 mainly transient members

Reward and Recognition

The Team as a whole will be incentives on a set of common criteria in order to build mutual dependency and a sense of shared objectives and values. (Additional criteria may also apply depending on process specific activity and any areas of specialization.

Team Coach:

One - The Managing Director XYZCO

The Team Coach will be responsible for the overall Team (i.e. Hub/Spoke) Performance, in line with the profile outlined in Section 7.3. This profile is also applicable at the Executive Level.

THE CENTRAL BUSINESS DEVELOPMENT TEAM

Description:

This Team is responsible for the Strategic Marketing Process, the Product and Service Development process and the alignment, implementation and Control of the Strategic Marketing effort of XYZCO.

Composition:

· This 'Core' Team will consist of:

Marketers

Product and Service Development Professionals

Other Expertise:

· The 'composite' Team will consist of the following additional representatives bringing ideas and feedback, and taking back direction/information.

Hub and Spoke Team Coaches

Hub Marketers

Relationship Managers

Finance/IT/HR

The Strategic Planning Team Coach - The Chief Executive'

Size:

Unknown at this time

Reward and Recognition

The Team as a whole will be incentives on a set of common criteria in order to build mutual dependency and a sense of shared objectives and values. (Additional criteria may also apply depending on process specific activity and any areas of specialization).

Team Coach:

One

The Team Coach will be responsible for the overall Team Performance, in line with the profile outlined in Section 6.3. This profile is also applicable at the Executive Level.

Links to Other Teams:

The following links are present:

Hub and Spoke Teams

Central Strategic Planning Team

Central Financial Group

Central HR

Central IT

Other areas of the XYZCO Group (External)

Strategic Partners (External)

THE CENTRAL FINANCIAL GROUP

Description:

This Group is a collection of 3 distinct self managed and highly empowered sub-teams in the areas of:

Additional Expertise will be called into the Group, as and when required, e.g. IT and HR

Size:

Not known at this time

Environment:

As a central group, these sub-teams may or may not be located physically together..

Reward and Recognition

Each sub-group will be incentives on a set of common criteria in order to build mutual dependency and a sense of shared objectives and values. (Additional criteria may also apply depending on process specific activity and performance against any areas of specialization).

Team Coach:

One

One individual would be responsible for fulfilling the 'Team Coach' role across the three sub-Teams. The sub-teams would be highly empowered, and essentially self-governing. However, dependent on the size of the group, there may be a need for a team leader position for each to assist the Team Coach.

Links to Other Teams:

Hub and Spoke Teams

Central Strategic Planning Team

Central Business Development Team

THE CENTRAL HUMAN RESOURCES TEAM

Description:

This will be a Central Team of Human Resources 'Specialists', concerned in the main with HR Policy Development, and the management of external HR Partners.

Composition:

HR Specialists

Policy Setting

Training and Development

Other Expertise:

HR may call on 3rd Party Specialists’ in support of specific initiatives.

Size:

Not known at this stage

Reward and Recognition

The Team will be incentives on a set of common criteria in order to build mutual dependency and a sense of shared objectives and values. (Additional criteria may also apply depending on performance in areas of HR specialization).

Team Coach:

One

The Team Coach will be responsible for the overall Team (i.e. Central HF Team) Performance, in line with the profile outlined in Section 6.3. This profile is also applicable at the Executive Level.

In addition, The HF Team Coach will feedback 'specialist' advice to the Hub/Spoke Team Coach in respect of the professional development of the Hub/Spoke HF Representative.

Links to Other Teams:

Hub and Spoke Teams

Central Strategic Planning Team

Central Business Development Team

THE CENTRAL INFORMATION TECHNOLOGY TEAM

Description:

This will be a Central Team of Information Technology 'Specialists', concerned in the main with IT Policy/Strategy, IT Systems Development/Operations and the management of external IT Partners.

Composition:

IT Specialists

Policy Setting/IT Planning

Systems Development/Operations

Other Expertise:

IT may call on 3rd Party Specialists in support of specific initiatives

Size:

Not known at this stage

Reward and Recognition

The Team will be incentives on a set of common criteria in order to build mutual dependency and a sense of shared objectives and values. (Additional criteria may also apply depending on process specific activity and any areas of specialization).

Team Coach:

One

The Team Coach will be responsible for the overall Team (i.e. Central IT Team) Performance, in line with the profile outlined in Section 6.3. This profile is also applicable at the Executive Level.

In addition, The IT Team Coach will feedback 'specialist' advice to the Hub/Spoke Team Coach in respect of the professional development of the Hub/Spoke IT Representative. The IT team may need to be organized on a more traditional hierarchical structure, given the level of specialization in the role.

Links to Other Teams:

Hub and Spoke Teams (IT Representatives)

Hub and Spoke Team Coaches

Central Financial Team

Central Strategic Planning Team

Central Business Development Team

7.3 Implications on the Management Structure

TEAM

MANAGEMENT ROLES

NUMBERS

MINIMUM

MAXIMUM

Hub and Spoke Team

Team Coach

Team Leader

1 per Hub & Spoke

1 per 30 people when Hub & Spoke over 30 in numbers

1 * 15 = 15

4

1 * 40 = 40

10

Central Strategic Planning Team

Chief Executive

( Regional Team Leaders )

1

Optional 4 ?

1

1

4

Central Business Development Team

Team Coach

Team Leader ( Product & Service Development )

Team Leader ( Strategic Marketing )

1

1 if necessary

1 if necessary

1

1

1

1

Central Finance Team

Financial Team Leader

Finance & Payments Team Leader

Inventory Management & Risk Team Leader

1

1

1

1

1

1

1

Central Human Resources Team

Team Coach

Team Leader HR Specialists

1

1 if necessary

1

1

1

Central IT Team

Team Coach

1

1

1

Total

24

64

(Note:- In an empowered environment as proposed there are fewer management positions required than in a more hierarchical structure. It should be noted however that all employees will be taking on more responsibility.

7.4 Benefits

The potential benefits from the flatter multifunctional team-oriented structure are as follows:

· Increased levels of customers satisfaction, on the basis that the use of cross functional, semi-autonomous, mainly self managing teams provides a very powerful enabler in delivering excellent performance.

· Team performance as a whole is more than the sum of the individual elements.

· Reductions in layers of Management, resulting in faster decision making, more proactive and responsive service.

· Increases the ratio of employees to managers.

7.5 Implications

There are a number of implications of moving to a more ‘team based’ flatter organization structure which will need to be taken into account. These include the following, and should be addressed further during the detailed design of the required HR Policies for the new world.

· Skills in team motivating, facilitating, coaching, and appraising need to be developed.

· Training in Teamwork becomes an essential requirement.

· Team Performance becomes the key, therefore remuneration schemes need to be developed to base rewards on team performance.

· Recruitment policies need to be geared to selection on the basis of teamwork potential, where appropriate.

· There is a requirement to be highly sensitive to cultural issues in considering how universally applicable the model can be. There is a requirement to consider alternative models in those areas where the proposed model would not by culturally applicable.

· Old Grading Structures become inapplicable. Requirement to address the issues of phasing out existing role structures, and phasing in the new.

· However, still need to be able to ‘field’ Relationship Managers perceived by Business Partners or Proposed Business Partners to be of the appropriate Seniority in line with the significance of the Relationship or the meeting.

· The ‘team ethos’ needs to become instilled within the Organization’s ‘modus operandi’.

7.6 Conclusions

The outcome of the above recommendations are as follows:

· A reduction in the layers of Management from 5 - 8 to 3 - 4.

· An increase in the Span of Control from 1:1/2 to 1:20/30 approximately

7.7 Recommendations

The following Recommendations are made:

· That the issue of the strategic location of Hubs be resolved immediately. ( See section 5.5 ).

· That the proposed Team Structures be refined in accordance with the above outcome.

· That further work be undertaken by the HR Team in the more detailed definition of the Teams , Team Structures, and the required links into the Performance Measurement, Management, Reward and Recognition Policies. In particular those ‘specialist’ areas where a more traditional hierarchical structure will need to prevail.

· That the above work be aligned on an ongoing basis with the work of the process and IT Teams, and the outsourcing decisions in respect of the role definitions for each process.

8. Cultural Issues

Organizational change is deep and complex. Behavioral as well as the structural changes need to be effectively managed. It is this aspect of Performance Engineering that makes it so different from the more traditional restructuring.

The required cultural changes will need to range from the visions of the organization to the attitudes and behaviors of the individuals within it. This aspect of organizational change is commonly referred to as cultural change, and for XYZCO will require a 180 degree shift from management hierarchy to customer focus, necessitating changes in the management structure, shifts in the traditional balance of power, and a new found trust in employees to develop the capability to perform their tasks in a more proactive and empowered way.

However, changes in values, attitudes and behaviors cannot be precipitated by an edict from management, or mandated in a memo. True behavioral and attitudinal change can only be made individual by individual, and group by group. It will not be a painless process.

8.1 Current Cultural Profile of XYZCO

The prevailing culture of XYZCO is a culmination of a number of factors including: the history of the component elements that make up the new organization; the nature of the core businesses from which XYZCO has evolved; the kind of people that those businesses have traditionally attracted; the style of the leaders who have shaped those businesses in the past ; and the place of those businesses in the ‘pecking’ order of the Company as a whole. Superimposed on this, are the specific cultural mores and behaviors of the various nationalities that make up the worldwide organization.

8.1.1 Current Culture Change Initiatives

A number of initiatives have recently been undertaken to begin to address the required cultural shift necessary if XYZCO are to become a truly responsive, customer driven organization:

· The recent XYZCO Conference held on the 11th - 13th February 199t, spent a significant amount of time addressing the required behaviors and attitudes of a 21st Century XYZCO person. The output from this conference is available to be used as a springboard for the required Culture Change Program to be developed.

· The Commercial Department Conference on the 7th -9th March 199t, spent some time discussing the impact from a global perspective of some of the ‘cultural’ issues raised in the Human Factors forum. The output from this conference should also be used as the basis from where to take into account the necessary ‘global’ differences in the development of the Culture Change Program.

8.2 The Required Shift in Organizational Culture

As a guideline to the identification of the magnitude of the required cultural change, the following tool, drawn from the public domain, was utilized by the Human Factors Team. This tool depicts eight levels of employee involvement, describing authority levels, spans of control, and management characteristics in organizations that are empowered in varying degrees.

· At level 1, an organization would typically manifest characteristics of slow decision making, reactive rather than responsive customer service, and a lack of flexibility in meeting customer requirements.

· At level 8, individuals with clear focus and objectives, highly trained and competent, equipped with the appropriate tools, and high levels of empowerment, would operate with a greater degree of autonomy, responding quickly, proactively and flexibly to customer requirements.

· However it must be borne in mind that the cultural mores within certain parts of the world would not be supportive of an evolution through the eight levels.

The Eight Levels of Employee Involvement

1.

Managers make decisions on their own, announce them, then respond to any questions employees may have.

2.

Managers usually make the decisions, but only after seeking the views of employees.

3.

Managers often form temporary employee groups to recommend solutions for specified problems.

4.

Managers meet with employee groups regularly to help them identify problems and recommend solutions.

Ongoing work groups assume expanded responsibility for a particular issue.

7.

Employees within an area function full-time with minimal direct supervision.

8.

Traditional supervisory roles do not exist; all or most employees participate in self-managing teams.

8.2.1 Results

The ratings assigned by the Human factors team were as follows:

· In respect of the current position of XYZCO, most considered XYZCO to be at level 2/3.

· In respect of the cultural shift required, most individuals felt that the aim should be for the organization to move to level 8.

· However, most individuals accepted that this aspiration would be naturally constrained by the prevailing national cultures in particular areas of the world.

· In respect of the speed with which the organization could make the required shift, based on the proposed Centre/Hub/Spoke model, the following were the findings of the Human Factors Team:

Timeframe

Centre

Hub

Spoke

Current Rating

2

3

3

Within 1 Year

6

7/8

8

Within 2 Years

8

8

8

8.2.2 Cultural Differences on a Worldwide Basis

In order to initially illustrate the impact on the above, the above tool was used to a limited extent at the Rome conference to get a feel for where the most significant differences might exist from a world-wide perspective. The table below summarizes the outcome of the brief discussions which took place.

Timeframe

Africa

Japan

North america

Rest of World

Current Rating

1

1

2/3

4/5

Within 1 Year

1

1

7

8

Within 2 Years

1

1

8

8

8.3 Conclusions

In conclusion the following was noted:

· It was fully recognized that organizing employees into empowered teams will not immediately equate to a change in the organizational culture.

· That culture change will need to be re-enforced by extensive education/training and other re-enforcement policies.

· Full cognizance needs to be given to the varying levels of applicability of the suggested vision possible on a global basis.

· That a non hierarchical environment would not be appropriate or prove functional in a number of locations throughout the world, particularly Africa, the Middle East, and the Far East.

8.4 Recommendations

The following recommendations are made:

· Design and development of the Culture Change Education Program to commence immediately. One of the key objectives to strongly re-enforce desired attitudes and behaviors.

· That the work commenced at the XYZCO conferences and during the Project XYZ Human Factors forum form a starting point from where more detailed work can take place.

· HR Policies and programs to strongly re-enforce the desired attitudes and behaviors.

· Communications Program to strongly re-enforce and underpin desired attitudes and behaviors.

· Worldwide cultural differences to be seriously addressed and their impact taken into account in respect of key messages, and the re-enforcing programs of HR policies and practices, Communications and Culture Change Education Program.

8.5 Resistance to Change

‘There is a tendency to believe that the merits of change will be obvious and automatically accepted by the people involved. In many cases such changes are resisted or not understood by employees’.

It is highly likely that the organization will encounter a degree of resistance to the changes proposed. However, resistance is a fairy natural by-product of any change. Resistance therefore needs to be anticipated, its dynamics understood, and an effective response developed:

· Supporting individuals as they move through the ‘change curve’ (Shock, Anger, Adaptation to Change).

· Leveraging on the momentum generated by ‘early adopters’ of change.

· Ensuring those who can sink the change initiative don't.

· Hold psychological warfare at bay.

· Forestall middle management and other snipers - Get them committed as sponsors, or neutralize their impact.

· Identifying the true ‘laggards’ of change and counteract their negative impact and replace them if necessary.

'In large companies there are political undercurrents which often try to hijack/wreck important initiatives for reasons which are complex. It is important that Senior Management show extreme impatience with such internal politics and make it clear that such behavior will not be tolerated.’

8.6 Common Areas of Resistance

Some common areas of potential resistance are:

· Functional Experts/Middle Managers

(Skill and Knowledge built upon over a number of years is undermined. There is a requirement therefore to take decisions above functional Specialist level in order to avoid potential Road Blocks to Change).

IT Specialists

(Change initiatives threaten IT Projects for new Systems already in the pipeline in support of old processes).

Grassroots

(Generally, only if there is failure to sell the benefits of change early on in the Performance Engineering Initiative).

8.7 Recommendations

The following Recommendations are made:

· Senior Management and early adopters throughout the organization to begin to ‘walk the talk’ of the 21st Century XYZCO Company.

· Individuals to be fully supported as they move through the change initiative:

· Ensure that a clear Vision is communicated throughout the organization which describes how the organization will look from an operational and attribute perspective, re-enforcing the reasons and imperatives for change.

· Provide information, education/training, coaching and opportunities for direct two-way communications between employees and the organization.

· Openly reward displays of the required behaviors, attitudes and individual achievements in order to encourage change.

· If necessary:

· Replace ‘snipers’ and individuals who fail to adapt to the new environment with individuals who are adapting more quickly. Not to do so if necessary, may institutionalize resistance and give off the message that management are not serious in their efforts.

· Make it clear that sabotage and non co-operation will not be tolerated.

· Take care:

· To ensure that any personnel changes of this nature are seen to be fair, and not perceived as being capricious.

· Not to drive resistance underground. This will result in serious demoralization of the workforce with resultant loss of productivity.

9. Supporting Programs - HR Policies in the Transition

As XYZCO moves through the significant changes proposed by the Performance Engineering initiative, it is highly likely that there will be some displacement of individuals currently employed within the Organization.

It must be recognized a change in the nature of the contract between Company and employee has evolved, with unconditional guarantees of job security no longer being a viable aspiration for management. It is important that the organization is candid about the economic and commercial realities behind the Performance engineering Initiative.

Undoubtedly, old ‘jobs’ will disappear, and new multi-skilled roles will emerge, requiring new and additional skills, competencies, attitudes and experience. The organization must be candid about the fact that there are no guarantees. The organization will undoubtedly move through a period of disorientation as it moves through the Transition. It is important that during this phase the organization:

· Effectively manages the transition in terms of the individuals it requires to sustain the new organization.

· Manages with respect, sensitivity and fairness matters affecting all individuals in the organization during this transition stage.

· Keeps the Trade Unions informed on a worldwide basis, ensuring that at all times the organization acts in line with legislative Requirements and local agreements.

9.1 Transitional Policies

As a result, of the above, a number of Transitional Policies will be required, in order to effectively manage the change to the mutual satisfaction of both the individual and the organization. These will primarily need to be in the following areas:

i) Skill/Competency Assessment and Selection

ii) Selection

iii) Appeals Process

iv) Counseling / Managing Survivors

v) Redeployment

vi) Redundancy

vii) Outplacement

viii) Communications

The following are the initial recommendations of the Human Factors Team in respect of the required Transitional Policies:

Note: Broad principles only are discussed in respect of the required Transitional HR policies. It is strongly recommended that additional HR professional expertise is sought in an exercise to jointly build on the concepts below into detailed HR Policies and Programs.

9.1.1 Assessment and Selection

In order to protect the running of the business, there will be a requirement to assess and select individuals for long, medium and short term roles in the organization.

It is critical that the Assessment and Selection Criteria/Mechanism put into place by the organization is unambiguous, and clearly understood by all employees. This is necessary for three basic reasons:

· Out of respect for the individual, who will need to feel reassured that the Assessment and Selection method is fair, and based on clear and unambiguous criteria.

· To demonstrate to the Trade Union organizations, that the Assessment and Selection method is fair.

· To protect the Organization itself from allegations of ‘Unfair Selection for Redundancy’.

i) Assessment

The following Assessment Criteria is suggested as an initial framework:

Assessment should be based on the overall competencies required by the new XYZCO.

· The starting point for Assessment and Selection will be the competencies as defined against the redesigned/designed new processes.

· In addition, the required behaviors and attitudes will be described for each role, and for the new XYZCO in general.

· Process Champions together with the Human Factors Representative will determine a weighting against each of the required competencies defined for each role in process, and the behaviors and attitudes described.

· Each competency/behavior/attitude is then assessed by line managers against each behavior indicating positive and negative behaviors using pre-determined statements.

· The Assessed behaviors statements will then be reviewed by the Human Factors team with an opportunity for follow-up discussion with Line Managers to clarify any gaps/discrepancies to ensure there is full supporting evidence/justification of fair assessment.

ii) Selection

The Selection process will then be driven against the criteria identified for each role (Long, Medium and Short), resulting in the identification of the following:

· Those individuals who have demonstrated the required competencies to move into a new XYZCO role

· Those individuals who have demonstrated the necessary potential to move into a new XYZCO with appropriate support/training

· Those individuals who we will seek to re-deploy within the Group, failing which

· Those individuals for whom the appropriate redundancy terms will need to be triggered.

For those individuals who do not have the required profile for the long term roles, but are considered suitable for the ‘short’ to ‘medium’ term roles required to protect the running of the business during transition, a further selection process will be undertaken. There will undoubtedly be a requirement to include loyalty payments in order to minimize business risk in these instances.

During the further refinement of the Assessment and Selection Process further consideration needs to be given to management of the Process in the instance of having an ‘over-subscription’ in terms of individuals with the required skills to undertake long term roles in the new organization.

iii) Appeals Process

It is also recommended that an ‘Appeals’ Process be put into place for individuals who feel the need for further explanation regarding the outcome of the above Assessment and Selection Process. It is recommended that this be available to individuals at a number of levels:

· Informally

· Formally

· Officially

iv) Counseling

It is strongly recommended that counseling services be provided throughout the organization as it moves itself through the required change. It is strongly recommended appropriate levels of counseling be available:

· To all individuals on a personal level.

· From outside traditional ‘line’ structures, if required by individuals.

· From outside of the Organization, to be offered to individuals on a discretionary basis.

· To Managers of individuals finding themselves displaced by the change.

· To Managers required to conduct ‘redundancy’ interviews with individuals.

· To those individuals remaining in the organization.

9.1.2 Redeployment

For any individual not successful in securing a full time role in the new organization, serious efforts will be put into their redeployment within the XYZCO Group, before resorting to Redundancy Terms. In addition, the following is recommended:

· ‘Temporary’ appointments only to continue to be made in XYZCO until the full impact of Project XYZ has been identified. However, where there are significant risks to the business, permanent appointments may need to be made.

· A formal and detailed XYZCO Policy for Redeployment to be defined by the Human Resources Team as soon as possible.

9.1.3 Redundancy

For those individuals who do not meet the required criteria for the available positions within XYZCO, and for whom redeployment is not an option, Redundancy Terms will be triggered in line with XYZCO’s Terms and Conditions.

9.1.4 Outplacement

It is recommended that Outplacement services be made available to support individuals for whom Redundancy is the outcome. These services to be:

In addition, it is recommended that formal links be made with other ‘local’ employers, in order to quickly identify local job opportunities for which former XYZCO employees, may be suitable.

9.1.5 Communications

Clear, and unambiguous Communications will be required in support of the Transition as it affects individuals. It is recommended that communication in this area be handled with the utmost sensitivity, taking care to explain the basis of decisions made at all stages, providing individuals with the required explanations to be able to rationalize and come to terms more quickly with decisions reached.

The timing of communications is also of paramount importance during this phase. Whilst it is likely that the Assessment and Selection procedure can be communicated in full to all XYZCO employees at the appropriate time, communications in respect of individual circumstances will need to be timed more on a ‘Just in Time’ basis, depending on the timing of the impact for the specific individual.

This issue will be addressed further in the Detailed Policy definition. Communications as a whole is discussed in more detail in Section 12. of the Report.

9.2 Recommendations

The following recommendations are made:

· That the above policy framework for Transitional HR Policies be defined and agreed in detail on a worldwide basis as a priority activity of the HR Team moving forward.

That the 'Snowdrop' software package is evaluated in respect of its suitability to provide some computer aided assistance in the collation of Assessment and Selection information, and resultant ‘gap analysis’. The costs are estimated at approximately $15,000, addition modules of the package may be applicable for other areas of the HR work.

10. Supporting Programs - Vision of HR Policies in the New World

Getting the best out of employees needs to be viewed as the outcome of a comprehensive support program consisting of excellent training, excellent support, and fair, (in the eyes of the employee), rewards. If the full potential of the workforce is going to be tapped in the new world, then a number of new supporting programs will be required in order to re-enforce principles and to motivate employees to achieve exceptional performance standards.

These are discussed below under the headings of:

Performance Measurement and Management

Reward and Recognition

The subject of Training is discussed in Sections 11.

Note: Broad principles only are discussed in respect of the required new HR policies. It is strongly recommended that additional HR professional expertise is sought in an exercise to jointly build on the concepts below into detailed HR Policies and Programs.

10.1 Performance Measurement/Management

The Human Factors Team agreed that they would approach the subject of Performance Measurement and Management from a 'clean sheet of paper', rather than from the basis of the process currently in place.

10.1.1 Principles of Performance Measurement

Given that at the heart of the basis of the radical transformation is dramatic improvements in cost, quality, service and speed; and given that companies don't transform, but people do, there is a fundamental requirement to shift the emphasis of performance measurement and management to one which clearly focuses on performance and results.

Performance in the new world of XYZCO should be measured on the basis of the value added to the organization by the execution of the process. The basis of performance measurement needs to be a combination of:

Results

Skills, knowledge and competencies

Values and beliefs (Behaviors)

of the individuals working within the Organization. In addition, the chosen mechanism must actively discourage negative manifestations of the above.

10.1.2 Outline Approach for XYZCO Performance Measurement

The Human Factors team defined in principle the following Performance Measurement approach. Please Note: It is accepted that the approach will undoubtedly require some customization and amendment given the particular cultural mores of a number of world-wide markets.

Performance Measures would be driven from the Performance Measures defined for the newly designed/redesigned processes.

· The associated targets set would be in themselves derived from the specific Business Objectives set for the Organization as a whole by the Strategic Planning/strategic Marketing Management Process. (These 'Performance Measures' are documented by process in each of the process redesign reports).

In addition, a set of required 'behaviors' would be driven from the analysis of the defined cultural behaviors required by XYZCO in the 21st century emanating from the XYZCO Customer Services conferences, and the Sales and Marketing Conference. Note: Again, full cognizance would be given to the demands of individual cultural mores, in establishing what these might be in any given market.

Skill/competency levels and knowledge criteria would be driven from the role profiles as defined for the new organization.

Finally, the overall program should be shaped to enable employees to feel that they are a vital part of the organization with a personal responsibility for its success.

These measures would then be applied with varying degrees of emphasis at the following levels:

· The Whole Team (Highly Performance Related)

e.g. The Hub Spoke Team

The Central Strategic Marketing Team

· Specific Roles within the Teams (Performance Related Within Specific Area of Control)

10.1.4 Recommendations

· That the above XYZCO Performance Measurement and Management vision be developed further by XYZCO Worldwide HR expertise in conjunction with outside consultancy.

10.2 Reward and Recognition

Linked with Performance Management and Measurement is the requirement to compensate employees on the basis of performance, i.e. contribution to Company Performance.

10.2.1 Principles of Reward and Recognition Program

Please Note: It is accepted that the approach will undoubtedly require some customization and amendment given the particular cultural mores of a number of world-wide markets.

The basic principle of Reward and Recognition in the new world of XYZCO will be to provide all employees with a financial stake in the performance of the process/processes/business as a whole. In addition it needs to act as an invaluable tool to re-enforce the types of performance and behaviors the organization wished to see more of. Employee motivation will be one of the mainstays of exceptional performance, requiring a Reward and Recognition program which upholds this.

It is recommended that Remuneration and Reward programs in the new world of XYZCO should be a combination of:

A basic Salary

A variable element consisting of Team based Performance related bonuses. The size of the variable element would be dependent on role, geographic areas.

Some skill/competency/knowledge based incentive/reward.

10.2.2 Outline Approach for XYZCO Reward and Recognition Scheme

The recommended outline approach for Reward and Recognition in the new world of XYZCO was a follows:

Based strongly on the Performance Measurement and Management approach outlined in the previous section.

In addition, the program should be shaped in such a way as to present employees with an opportunity to share in the success of the organization, on the basis of meeting the required Team and individual Performance Targets.

The program should be based on a simple and understandable formula.

The performance related elements should be rewarded primarily on the basis of the Performance Measures assigned, but should allow room for reward of exceptional acts of 'heroism'.

The variable element of the remuneration package should be paid/distributed on a more regular basis.

· Team members to be involved in the determination of the allocation of the 'Bonus Pot'.

10.2.3 Nature of the Variable Elements of the Remuneration Package

The following were discussed in respect of the nature of the potential Rewards.

Sabbaticals

Additional Vacation

Hotel vouchers for week-ends

Restaurant vouchers

Personal study program

Provision of latest software/technology for personal/JVProject use

Leisure centre membership for 1 month etc.

Service Awards

Exchange Programs within XYZCO Group/Business Partners

Lead site for first wave of new technology/subsequent additional application/functionality releases

Company contribution to Christmas/mid year celebrations

10.2.4 Career Progression/Paths

Undoubtedly, career progression along the traditional lines of upwards to the next level within the organization will be greatly constrained. Consequently, career progression as such may become more of a lateral rather than an upward movement.

Part of the additional work required in this area is how to motivate employees under these new conditions. Psychological and cultural barriers must be carefully managed in the transformation to a flatter much less hierarchical structure where even job titles will no longer reflect the 'importance' or 'status' of the role.

10.2.5 Recommendations

The following recommendations are made:

That the above XYZCO Reward and Recognition vision as described above, be developed further by XYZCO World-wide HR expertise with assistance from outside HR consultancy if required.

That further 'benchmarking'/research be carried out in respect of other companies undergoing similar radical transformation in addition to other areas of the XYZCO Group.

11. Supporting Programs - Training Program for the Organization

As can be seen from the Job Roles outlined in Section 6, 'Empowerment' requires a greater set of work activities to be carried out by individuals. In addition, the emphasis on teamwork described in Section 7, requires employees to understand more fully the jobs of other members of the team, and indeed how to operate effectively as part of a team. There is therefore a requirement to accept that a fairly substantial investment in training will enhance the total corporate skill level and capability, thereby underpinning the successful transformation and continued growth of XYZCO.

11.1 Principles of the Training Program for the Organization

A variety of training programs will be required covering both process, on the job, and cultural programs. In addition, a variety of methods should be considered including CBT, interactive and embedded training materials and Prototyping. Care needs to be taken in the management of identified skill gaps, particularly those identified in the selection process outlined in Section 9. In some cases, the skill gaps identified may be so significant that new employees will need to be recruited.

However, this is not to say that a 'shopping list' approach to training should be taken. Whilst training will need to be available to everyone, and frequently, programs will need to be carefully designed and delivered in order for them to effectively underpin the strategic thrust and vision of the organization and to reinforce some of the new behaviors and values demanded by the Process driven, customer focused, empowered, and proactive working environment.

The principle of Just in Time training will be practised, to facilitate maximum return from training investment, and will require careful alignment of the Training program, with the overall Implementation schedule.

11.2 Outline Approach to XYZCO Training Program

The following forms the basis of the Outline Approach to the Training Program recommended for XYZCO.

11.2.1 Top 10 knowledge and skills XYZCO wide

In an analysis of the Job Roles identified during the process design/redesign phase, the following were the 'Top 10' common skills, competencies and areas of required knowledge identified across the whole organization: (Not listed in priority order).

Communications Skills

Knowledge of XYZCO structure and processes

Flexibility

Coaching Skills

Team Working Skills

Working in an Electronic Environment

Influencing & Negotiating Skills

Problem Analysis Skills

Decision Making Skills

Language Skills

11.2.2 Supporting Training Programs Required

From the above analysis, together with the 'specialist' requirements identified from the role profiles, the following broad categories of Training Programs were identified, all of which require to be tied to XYZCO's key strategic needs.

i) Culture Education Program

To teach the organizations’ Vision and Values, and to re-enforce required behaviors and attitudes.

ii) Process Skills

Team working

Team Coaching

Leadership

iii) Skill Enhancement

Process skills

IT training to support new systems

Specialist skills and knowledge

iv) General XYZCO Knowledge

Of own process and knowledge of other processes/XYZCO structure, i.e. Cross Training

11.2.3 Training Methods

The training methods to be incorporated in the new environment should not be restricted to 'formal' training courses, but should incorporate a comprehensive range of mediums and opportunities, enabling training and development to emerge as a continuous process of employee improvement, not dependent on attendance on specific courses.

The methods identified by the team for incorporation in the overall training for the organization include:

On the Job training

· Continuous Coaching

Formal Workshops

Self Study/Development Materials

CBT

Specialist External Courses/Programs

11.2.4 Training Needs Analysis and Skill Gap Analysis

It is recommended that the process of skill assessment, gap analysis and Training Needs Assessment be conducted initially at the evaluation and selection phase of Transformation program as outlined in Section 9. Ongoing analysis will fall to the individuals themselves in conjunction with the Team Coach.

11.3 Proposed Initial Training Programs

The following Initial Program is recommended:

11.3.1 Hub & Spoke (Phase 1) - Training & Education 199u

Culture Change Program

An extensive entry level training program that focuses on the skills, behaviors, attitudes and values requiring re-enforcement.

Target Audience: All XYZCO World-wide

Medium: 3 Day workshop

Design and Delivery: XYZCO Training Team in conjunction with external Consultants

Subject Matter: Change within XYZCO

Customer Service

Structures

New processes

Skills and Behaviors

Marketing Orientation

Delivery Dates: Start June 199u (approx.).

Completion December 199u.

35 workshops (18 delegates plus two facilitators per workshop)

Estimated Costs: $325,000 (Inc. Outsourcing/Accommodation Costs)

11.3.2 Hub & Spoke (Phase 2) - Training & Education 199u

Team Coach Module

A comprehensive training program that focuses on the skills, behaviors and values required of a Team Coach. This module to precede any associated Team Working program for the Team for which the Coach is a member.

Target Audience: Approximately 60 Team Coaches

Medium: 2/3 day workshop

Design and Delivery: XYZCO Training Team in conjunction with external Consultants

Subject Matter: Performance Management

Coaching

Leadership

On the job training

Identification of Training Needs

Alternative methods

Teamwork

Delivery Dates: Start 199u (approx.).

Following Culture Education Course

30 to go through module in 199u (Approximately half of total number of Team Coaches)

Estimated Costs: Development costs in 199u

Plus, Delivery to approximately 30 people. (3 workshops)

$30,000

11.3.3 Hub & Spoke (Phase 3) - Training & Education 199u

Team Work Module

A comprehensive training program that focuses on the skills, behaviors and values required of effective Team Working. This module will follow the associated Team Coaching program and will be attended by both the team and the relevant Team Coach. This course should be scheduled approximately 1 week prior to the new working structure taking effect.

Target Audience: Approximately half of the new teams (approx. 300 people) in 199u

Medium: 2 Day module - Close to location of team

Design and Delivery: XYZCO Training Team in conjunction with external Consultants

Subject Matter: Communication

Listening

Influencing

Negotiating

Emphasizing

Getting the most out of Team Work

E.g., What is a Team? (effective How will we be measured? - Rewards/Benefits

Coaching

Customer awareness/focus for this team

Delivery Dates: Start 199u (approx.).

For half of the new teams, approx. 300 people

Estimated Costs: Development costs in 199u

Plus Delivery to approximately 300 people. (12 workshops based on average 25 people per group)

$150,000

11.3.4 Hub & Spoke (Phase 4) - Training & Education 199u

Specialist Training

Specialist Training Requirements will be identified during the evaluation and selection process identified in Section 9.

Internal IT Applications Training Costs, 2 days per 600 individuals (1200 days), with 4 to a group (300 days), at $200.00 per day

Approximately $60,000

Total

Approximately $360,000

11.3.6 Recommendations

The following recommendations are made:

That the above XYZCO Outline Training Program be developed further by XYZCO Training in conjunction with appropriate outside consultancy

12. Supporting Programs - Communications Program

There is an overriding requirement during the anticipated organizational changes to effectively manage the conversation between XYZCO, its employees, customers, suppliers, the rest of the XYZCO group, and its Shareholders, as it transforms itself into a proactive customer focused enterprise.

The critical importance of an aggressive Communications Program in underpinning the above change initiatives is universally accepted within XYZCO. It is also universally accepted that in order for this to be successful, some serious effort needs to be expended in ensuring that a communications mechanism is in place, operates effectively and efficiently and is finely attuned to the issues needing to be communicated and to the needs and wants of its target audience(s).

12.1 Initiatives Currently Underway

A number of key initiatives have recently been undertaken, or are currently underway within XYZCO concerned with the issues of Communications which are outlined briefly below:

· The Project XYZ Human Factors Baseline Report made a number of recommendations in respect of the issue of communications.

· XYZCO Communications resources have been recently identified and assigned responsibility for communications within XYZCO.

· Princess Leia

· Han Solo

· An outline Communications Strategy has been produced by Princess Leia and presented to XYZCO Management. (Attached at Appendix II).

· The detailed Communications Strategy, Tools, and Implementation Plan for XYZCO is currently under detailed development by Princess Leia and Han Solo.

The further development of the above initiatives will form the basis of the Communications Strategy for XYZCO as it moves forward. However, a number of specific issues were raised during the work of the Human Factors Team which are highlighted below:

12.2 Purpose of the Communications Program

An effective communication program can be utilized to:

· Build commitment, both internally and externally.

· Sustain the sense of meaning of the vision associated with the change effort.

· Reassure employees and manage sensitive issue appropriately

· Re-enforce cultural change

· Launch the change initiative in an exciting way to incite individuals to ‘buy in’

12.3 Key Messages

The following key messages were identified in respect of Project XYZ:

· Be clear and unambiguous about the key messages up front:

· There will be fewer jobs

· There will be new jobs

· There will be redeployment

· There will be redundancies

· The nature of the contract between XYZCO and its employees is changing

· It will not be easy or painless

· Be clear about the purpose of the Project:

· Cost Reduction through operational excellence

· Service Improvement

· To grow and expand competitive advantage

· To develop a wider range of new products/services. ($20m within 3 years)

· Explain why its necessary

· Re-enforce the positive

· Redesign is by the employees, as part of cross functional teams.

· Changes are driven by the Customer.

· XYZCO is gearing up to be ‘first choice worldwide’.

· XYZCO must change the way we think and act. Our attitude must change.

· XYZCO is a worldwide Team.

· XYZCO will invest in its people.

· There is no end to the initiative.

· Communicate at all stages of the Change Program in an open and honest way

· What the change plan is

· Who’s, Who

· Why the change is necessary.

· What outcome is expected

· What the implications might be

13. Recommendations

The following recommendations are made:

· That the XYZCO Communications Strategy ‘Communications in XYZCO’ be further developed into a detailed and aggressive communications program for XYZCO by Princess Leia and Han Solo.

· That the detailed Communications Strategy take full account of the work and recommendations already undertaken by Project XYZ at Baseline Phase.

· That communications resource and expertise form a critical part of the XYZCO Transformation Team.

· That the Communications Program be carefully aligned with the overall Transformation Plan for Change, to ensure that communications are both timely and appropriate in their content. The Communications Resource identified should be proactive in ensuring that this is so.

· That XYZCO be targeted as a single entity in terms of the Communications Program.

· That the Communications Program be implemented as a matter of urgency.

· That the Communications Program underpinning the Assessment and Selection of individuals for the new organization be handled with particular sensitivity, honesty and openness to the individual, and be appropriate in both its timing and content.

· That the Communications Program be proactively used to re-enforce the required Cultural Change.

· That an approximate annual budget of $100,000 be anticipated, including the assistance of some external resource.

14. Transformation Plan

In order to bring about the required transformation of the XYZCO business to a customer focused, process driven and cost efficient operation, sufficient resources must be mobilized in conjunction with the necessary ‘Enablers’ to follow through delivery of the vision, and realization of the potential benefits.

This will involve the following:

14.1 Commitment from the Top

The transformation effort must be energized from the top. Senior Executives within XYZCO must be united around a common vision for the Organization and the purpose of the program. A ‘Champion’ will be required. The challenge of managing the turbulence resulting from such radical transformation should not be underestimated. It is therefore the strong recommendation of the Human Factors Team that the Managing Director of XYZCO is the Change ‘Champion’

14.2 Transformation Team

In addition to the above, a multifunctional Transformation Team will be required, with a wide range of skills and competencies necessary to move the Transformation forward effectively at the appropriate pace.

It is recommended that the change activity is managed separately from the day to day operations of the business, so as not to unduly burden business managers with significant additional workload. In addition, the transformation activity will require a formal project management structure and minimum bureaucracy. XYZCO must therefore mobilize sufficient technical, human, organizational, political and process expertise to effect the needed transformation in the guise of a Multi functional Transformation Team.

14.2.1 Organization of Multifunctional Transformation Team

The Transformation Team would require a mix of key expertise be organized on a team based structure including a core team element, together with number of other ‘sub-teams’ coming together for the duration. The following key skill mix is required:

The Transformation Team will require competencies and expertise in the following areas:

Leadership, Direction and Change Management Expertise

Planning, Analysis and Research Capability

Strategic Business Expertise

Global HR Expertise

Information Technology Expertise

Business Process Expertise

Communications Expertise

ROLE

SKILLS/COMPETENCIES

RESPONSIBILITY

Transformation Team Champion

(Leadership, Direction and Change Management Expertise)

Whole Executive Team need to act collectively as the Transformation Sponsor.

One individual needs to be singled out as the focal point of the Change Activity.

This individual should be Luke Skywalker, the Managing Director of XYZCO.

· Figurehead for Change

· Commitment

· The ability to inspire/incite change

· Conceptual /Visionary Skills

· Strategic skills

· Carries intellectual weight

· Hard headed/Impatient for results

· Ability to monitor, ‘kick down doors’, and effectively demolish any ‘Road Blocks’ to change

· Proven track record in Change Management

· Natural communicator

· Ambassador/PR for the Transformation

· Ability to deal with the ‘softer’ behavioral aspects of change.

· Articulate the new VISION of the organization. Vision needs to incite the organization to action. Needs to be supported by the reasons behind the vision, and the imperatives for change.

· Communicate management support and belief in the Transformation Project to the internally and externally, based on dissatisfaction will status quo and passionate belief in new ways of operating.

· To modify own attitudes and behaviors to be consistent with the required new culture.

· To realize and accept the time and effort required to nurture the new attitudes and behaviors throughout the organization.

· To appoint a Transformation Team Coach.

Transformation Team

Transformation Team Coach

(Leadership, Direction and Change Management Expertise)

As above, but at a more operational level

Team Player

Catalyst for change among the team

Driving/Motivational Skills

Ability to balance Task/Individual/ Performance

Tactical Skills

Logistics Skills

Communication/Networking Skills

Negotiation Skills

Knowledge of the business - World-wide

Experience of Managing Major Change

· To pick up where the sponsors leave off, and turn the Vision into an Implementation Strategy and Plan.

· To create a strong, cohesive and effective Transformation Team.

· To identify and plan the activities required to transform XYZCO in line with the recommendations of the Project XYZ Business Case for Change.

· To identify and obtain the required resources to deliver the above, including ‘core’ transformation team, sub team Coaches and external resource.

· To promote the required co-ordination across functions, activities and ‘sub teams’.

· Identify key messages, and target audiences for each milestone (internal and external), including the VISION.

· Confirm channels/mediums, including XYZCO ‘public’ events

· Confirm Budget

· Communicate and Implement Strategy

· Assess timing issues, and align program

· Produce detailed Communications Program/Schedule

· Communicate and Implement Communications Program/Schedule

· Build commitment and understanding throughout the program, both internally and externally.

· Conduct whole program as if a PR Campaign, akin to launching/promoting a new product.

3rd Party Consultancy Expertise

· Expertise in Organizational Change

· HR Consultants

· IT (Architecture Definition; Application Development)

· Project Management

· Outsourcing

· To undertake activities in line with specific Terms of Reference/Contracts issued by the Transformation Team Coach, Sub Team Coaches, where the required skills/competencies are not available in house.

14.2.2 Transformation Team Resources

RESOURCE

RESOURCE ESTIMATE

FULL TIME/PART TIME

Transformation Team Champion

1 x Transformation Team Champion

Part Time

Transformation Sponsors

XYZCO Senior Management Team

Part Time

Core Transformation Team

1 x Transformation Team Coach

1 x Team Leader Customer Facing Processes

1 x Team Leader Central Processes

2 x Planning, Research and Analysis

1 x Project Support

Full Time

Part Time

Part Time

Full Time

Full Time

Business Strategy Team

1 x Strategic Decisions on location of Spokes/Hubs/Centre

(Support Team on above x 3)

5 x Outsourcing Opportunities

(Support Team if necessary x 2)

1 x 24 hr service Provision

(Support Team x 3)

1 x Strategy Point of Sale

(Support Team x 2)

Full Time

Part Time

Full Time

Part Time

Full Time

Part Time

Full Time

Part Time

Human Resources Team

1 x HR Team Coach

2 x Training

4 x HR Supporting Programs Design

10 x Skill Matching/Gap Analysis/Selection

2 x Counseling (plus Outplacement)

Line Managers

4 x HF Reps for Process Design Teams

Full Time

Full Time

Full Time (For duration)

Full Time (For duration)

Full Time

Part Time

Part Time

IT Team

1 x IT Team Coach

70 (Man Years)

1 x Relationship Management if outsourced

Full Time

Full Time

Full Time

Business Process Teams

- Design AND Implementation

8 x Teams of 4 = 32 (including Team Coach)

8 x Teams of 4 = 32 (Including Team Coach)

Full Time (During Design)

Full Time (During Implementation)

Communications Team

2 people

Full Time

External 3rd Party Consultants

HR IT

Change Management Project Mgmnt

Outsourcing Decisions Bus’ Consultancy

As Required

14.3 Implementation Approach

The approach adopted by XYZCO as it moves forward in the Change initiative will require careful thought and planning taking into account the following: issues:

· Which Processes/Change initiatives will deliver the most benefit earliest, either from a cost reduction or a revenue generation point of view.

· Which Processes/Change initiatives will have the most radical transformational impact on the organization.

· What pace of change can be effectively sustained by the organization.

· Resource requirements and the organizational impact of the proposed pace of change.

· Outsourcing Opportunities, and formal evaluation of Business Case for each potential opportunity.

· Dependencies

· Critical Strategic Business Decisions needing to be made

· Number and strategic location of Hubs.

· 24 Hour Service Provision.

· Agent Point of Sale Strategy.

· Stability of current day to day systems and operations.

· HR Policies and Procedures in place.

· Design and development of Training and Education Programs.

· IT Infrastructure/Application dependencies.

· Implementation Logistics.

· Impact of the Business Peak Period.

14.4 Early Implementation Initiatives

Whilst early Implementation initiatives and successes would positively re-enforce the Transformation at an early stage, care must be taken that these initiatives are not purely attempts to be seen to be doing something, unwittingly diverting valuable resource from the main focus of the initiative, and causing unnecessary short term disruptions to business and the individuals affected.

In order to control the risk of inappropriate initiatives moving ahead too quickly, a set of criteria has been identified against which early initiatives for implementation must be evaluated.

14.4.1 Criteria for Early Initiatives

· Must not adversely impact Customer Service

· Must be in line with the overall direction of the Project

· Must be consistent with the Business Model

· Must be consistent with the Vision for the organization Structure

· Must deliver quantified benefits

· Must avoid unnecessary disruption to individuals where the proposed initiative is known to be interim only

· If an interim initiative, must be within a time frame which allows significant benefits to be derived, before the final solution is available

· Should not compete with, or divert resources from the main push

· Must not have significant adverse impact on work of other areas or obstruct day to day business

· Must be introduced in a structured and co-ordinated way, with full communication of the reasons/benefits/impacts

· Must show good cause for implementation during ‘peak’ period

14.5 Recommendations

Based on the above, initial analysis suggests the following Recommendations

14.5.1 Transformation Plan

That the Transformation Team Champion be XYZCO Managing Director, Luke Skywalker.

That the Transformation Team Coach be appointed by and report directly to Luke Skywalker.

That the Team Coach have overall accountability for progress against Plan.

That the Transformation Team Coach define the roles and responsibilities of the Transformation Team Members, and is involved in their selection.

· That a Multifunctional Transformation Team start to be put into place immediately.

14.5.2 Implementation Approach

· That Resources be assigned initially to moving forward with:

· The development of the Payment Process

· The development of the Relationship Management/Client Services Process

· The development of the Strategic Marketing Management Process

· The development of the NPD process

· In support of this, that work also commences in the following areas:

· Design/ Development and Testing of HR Policies and Practices for the Transitional Phase

· Design/ Development and Testing of HR Policies and Practices for the New World of XYZCO

· Design/ Development and Testing of the required Training and Education Programs

Some name

Craig has over 25 years of Technology Consulting experience including 10 years in Project Leadership roles. He has extensive background working with large scale, high-profile systems integration and development projects that span a customer’s organization, and experience designing robust solutions that bring together multiple platforms from Intel to Unix to Mainframe technologies with the Internet.